francisco sfgtv meeting of the san francisco budget and finance sub-committee occurring april 24, 2013, will begin shortly.

>> i would like to thank the members of sfgtv covering this meeting as well as the clerk. do we have any announcements? >> yes, silence all cell phones and electronic devices and complete the speaker cards and documents to be included as part of the file should be submitted to the clerk.

>> the items will appear on the board of supervisors agenda unless otherwise stated. >> okay, mr. clerk, could you call items number one and two together. >> item one, the district attorney to retroactively accept an inkind gift of technical assistance valued at $250 from the open society foundation. item number two, resolution, authorizing the office of the district attorney to retroactively accept a gift of design services and furniture valued at a total of $26,445, from various donors. >> thank you very much. mr. clerk, we will turnover to public comment in a second, but just as a preview, we are going to entertain a motion to entertain one and two, until the may 8th, budget and finance committee meeting due to a scheduling conflict that the district attorney had for today's meeting. with that i will open up one and two to public comment, if there is anyone that would like

to comment on these items step forward. seeing none, public comment is closed. >> could i have a motion to continue these to pay 8ths to the budget and finance committee meeting. we could do that without opposition. >> call item number three. >> just to confirm, to the subcommittee. >> i have the 1:00, to the regular committee. >> yes, thank you. >> item three, ordinance authorizing the public utilities commission general manager to enter into a long term enter connection agreement with the pacific gas and electric company to connect to a small reknewable energy project to the system. >> we have john doyel from the pfc to come and present on item number three. >> thank you, committee members and supervisors. my name is john doyel and i

manage the infrastructure projects for the utilities commissions and this project just to give you, context is a small in-line hydroproject and it is the first of this kind of project that we have done in the city and it takes advantage of the energy in the pipes that come from crystal springs reservoir now, as the head drop in the pipes, which creates energy, which at the moment is wasted. so, this project will actually be a small hydroelectric project that is incorporated into the pipelines and it will take advantage of that otherwise wasted energy and will generate electricity and it is a small project and it is the first of the kind that we have done and there are others that we are looking at later on. and it will be a 200 kilo wat, producing it per year and that is equivalent to 300 of the

power provider. and we are preceding using the department of public works, and we are actually doing the design in this project for us. and the project is fairly well advanced in terms of the design and we then, when the design is complete and trying to go out with our rfp for our construction and final design and bids on the project. and as part of that process, before we get to the final design and final cost estimate, we need to know, who pg, and e's connection requirements would be and that is why this is asking for your approval, and so this is pretty routine, we have done about 14 solar projects so far and all of them had pg&e and there is nothing really unusual about this, it is just allowing, the project to connect to pg&e system and to be able to distribute the powerfulness project and other city facilities and other lines.

so, the interconnection, agreement will be fairly simple in terms of its scope, and the electrical requirements that go around installing the meter, and so, there is an upgrade requirement for that meter and then there is a long term ownership charge. so, we have estimated of those costs that come into be 36, 765, that is a high number that we think will actually come in less than that when it is finally done and we will not have to pay that amount. and so, we are asking for your approval on the inner connection agreement and we wanted to do this now rather than wait so that we could know what the costs are and whether there could be a need to cure any problems or costs for pg&e, but it does not appear to be, it appears to be straight forward. so that is basically, what it is.

i understand that there are legal issues that we need to talk about in a moment but we can take any questions before we get to that? >> okay. thank you, mr. city attorney? >> john, gibner city attorney, and just a few provisions in the ordinance, and the ordinance approving the contract, waived the concern requirements. and two of those requirements that are proposed to be waived can't be waived because they are adopted by the voter initiatives and one is government comment code, which you are both familiar with, that prohibts contractors from getting campaign contribution to elected officials, and the other is administrative code section or chapter 12 g, that prohibts city money from being used for political activities and so our recommendation is

that you strike those sections of the ordinance on page 4, lines 8 through 11. and the contract itself, provides that the parties will be subject to all applicable laws and so the contract acknowledges that pg&e will continue to be subject to these provisions. >> okay. obviously we would completely agree to it accept that the amendments and leave it at that. >> supervisor avalos? >> just a couple of questions, is there any schematic designs so far of the hydroelectric generate ors? >> i am sorry i didn't understand. >> are there any designs that are available to see. >> from pgand e? >> no. from the project. >> yes. >> we have prelim drawings and they are going through the

evolutionary phase and yes we have a set of drawings. >> is that something that you can send to my office or e-mail me? >> yes. >> please? >> make those available to you, no problem. >> just curious, thank you. >> okay. >> any other questions right now? >> okay. thank you, very much, we appreciate it. we have mr. rose from the budget analysts office. >> mr. chairman, and supervisor avalos on page 4 of the report as shown in table one which is actually on page 5, and there is a department just indicated the total estimated cost to be paid to the pec to pg&e under this proposal agreement would be a maximum of $86,765. and we also report on page 5 that additionally, as shown in table two on page six of our report, based on the expected hours of renewable hours

produced per year from this project the pec will pay an estimated cost of $8600, to 16,500 annually to pg&e for the transmission of the electricity and finally we point out on page six, according to the pec, various administrative codes and standard contracting requirements must be waived to be in accordance with the federal energy regulatory commission, proposed agreement and so as a result, this proposed ordinance does wave the city standard contract requirements because of that reason and for that reason only, we consider the proposed ordinance to be (inaudible) for the board of supervisors. >> thank you, mr. rose. is that the reason that we have these funky inclusions that would wave the other requirements? >> yes, in other words, we listed all of the requirements that the pec represented to us must be waived in accordance with the administrative code.

generally, we are supportive of this legislation, but because standard contracting requirements would be waived, for example, contractors that have contracts with the city, are limited to the amount of political contributions they can contribute and that is an example of what will be waived. for that reason we felt that we should say to the board of supervisors that it is a policy on your part to wave those requirements. >> otherwise, we would have said to approve this legislation without qualification. >> thank you, mr. rose, i think that everybody in this legislative body is support of our laws and believes in them strongly, just to be sure, amending this legislation will not jeopardize. >> not to my knowledge. i don't see any problem with doing that. >> all right. if that is the case, in the future we could automatically make sure that those things are not included in there.

you don't want to have to keep amending these things. >> that is fine. >> any other questions? >> okay. this time we will open up for public comment, anyone wish to comment on item three, step forward, seeing none public comments is closed. we have amendments suggested from the city attorney? >> objection, we have a motion to do so, without objection. and then, a motion to move item number 3 forward to the full board, we can do so without opposition. >> as amended. >> thank you, very much. thank you. >> mr. clerk, could you call item four, resolution declaring the intent of staoet and county of san francisco to reimburse concern expenditures from the proceeds of the future bonded indeadedness authorizing the director of mayor's office of housing, to submit an application and related documents to the california

debt limit allocation of committee to permit the issuance of residential marriage revenue bonds for 1280 laguna street. we have the mayor's office of housing. >> litia eli, project manager. western park apartments is an existing affordable housing development owned by presbyterian homes which say non-profit. it includes, 182 affordable senior rental units. and in four different buildings and most of these, 114 of them are subsidized through the section eight program. and it serves households ranging up to 60 percent of median income and it was constructed in the early 70s so it is in dire needs to maintain it for the long term. the resolution that you are considering would authorize our office to apply to the state for tax exempt mortgage revenue

bonds in an amount not-to-exceed $25 million. and so the owner is proposing to undertake a substantial rehabilitation of the project and would refinance the project using revenue and also, low income housing tax credits. the schedule is to start construction to follow this year and to be complete within a year. and tenants will be relocated temporarily outside of the building but there will be no permanent displacement of anybody because of the relocation or because of the financing over all. you have seen a number of these finances before, we do about eight in a year of these. and they are a con due ent financing so they do not require the city to pledge the remraiment of the bonds, the only recourse for the payment is the project revenues themselves. should we receive authority to apply, we will need to return to the board, most likely at the end of the summer.

for permission to actually issue the bonds. >> we have a representative here from the presbyterian homes if you have any questions about the project itself. >> i think that we are okay. >> all right. >> thank you. >> thank you very much. >> thanks for bringing this forward. this was sponsored by supervisor breed. we have analyst report on this item? no, and we will open it up to public comment, seeing none public comment is closed. motion to move this forward to the full board with recommendation, we can do so without objection. >> mr. clerk do we have any other items? >> that completes the agenda. >> okay, we are adjourned.

okay. everyone ready to get started? first i would like to thank everyone for coming today. it's an important day. before we get started i would like to bring the mayor up and talk about the importance of this contract and these hotel

members, the team and the city of san francisco. it's a very positive day. so mayor, c'mon up. >> thank you, michael. first, i want to thank all the work force that are standing behind me, the men and women who make this hotel a success for the city and i would like to thank you for your leadership and last time i was in the same room with mike casey we were announcing the warriors deal. a lot of good paying jobs. today is about our no. 1 industry? san francisco which is tourism and the hotels and their conclusion with the labor union to come to an agreement that

extends perhaps 5-and-a-half years of agreeing to a labor contract for all the 750 union members working in this hotel. you know, san francisco is incredible. i just came back from the international city cities of cork ireland, paris, france. they marvel at how well we have done things here in our great city and keep it going and remake it. they also have a sense that anytime their members come here, they are experiencing a huge amount of warmth from people who serve them. i know the quality of our hotels is one of the main stays of why we are such a really and successful tourist center for all over the world, not just in san francisco or california, but all over the world. these workers who have in past years probably didn't have such smooth negotiations in the

past, we are reminded of that through some couple of decades where everybody struggled, but it's quite apropos that we have stressed the important collaboration of talking with people and making sure we understand their needs and necessities early on that not only are they going to have wages but a health plan and pension for years to come. when you have hotel workers, working class people who can take care of their family and themselves and have contributed in the workplace contributed to the quality of the whole city and affects other industries as well. i know that being the mayor of the city for two years. i know with repercussions that this

agreement has with other hotels and other industries that want to be successful in the city. you have to treat your workers with the highest quality their deserve and when they are happy, we are all happy and i'm happy. that's the goal of being in san francisco is that you have to have a happy work force, you have to have them looking that they don't have doubt and they are taking care of their families and taking care of visitors. this hotel is the largest hotel in san francisco, 1900 rooms and we are going to use them up is as much as we can when we invite organizations like the warriors to come or america's cup or the super bowl bid that we are putting together. this is going to be one of the center hotels and i will be the first to say that i'm very proud of this work force, of what you have done today for taking care of

not only yourselves, but your families and that you are willing to take care of this city and my kudos to mr. casey and mr. dundey. and how important it is that we do find our way forward in agreements particularly significant agreements like this labor agreement between the hotel workers and the hotels themselves. this is an incredible part of our economy, but also an incredible part of who we are as a city. the hotel is really the first thing that a lot of visitors against -- get a sense of the warmth that they feel everyday. i have felt that going to hotels world class hotels. you find people working with a smile beca